by Ian Cooper
If you’re looking for a solid investment that will protect your portfolio from excessive volatility and generate income, you may want to jump into real estate investment trusts, or REITs.
For one, real estate serves as a hedge against inflation.
That’s because when inflation runs hot, rents will rise. Plus, some of the leading REITs provide exposure to offices, apartment buildings, warehouses, hospitals, shopping centers and hotels, or a combination of all. All while paying out high attractive yields.

Also, according to analysts at ICR, as noted by Forbes.com, REITs are expected to produce a total return of 9.5% this year. That being said, here are some of the top high-yielding stocks you may want to consider especially with rocky markets.
iShares Core US REIT ETF
With an expense ratio of 0.08%, the iShares Core US REIT ETF (USRT) yields 3.04%. It offers exposure to 133 holdings, including diversified REITs and other real estate holdings across multiple property sectors. Some of its top holdings include Prologis REIT, Welltower, Equinix REIT, Simon Property, Digital Realty Trust and Realty Income REIT.
Invesco KBW Premium Yield Equity REIT ETF
With a yield of about 8.71%, the Invesco KBW Premium Yield Equity REIT ETF (KBWY) invests at least 90% of its total assets in the securities of small and mid-cap equity REITs that trade in the U.S. and carry respectable yields. Some of its top holdings include Global Net Lease, Service Properties Trust, Global Medical REIT, Gladstone Commercial, EPR Properties and Omega Healthcare to name a few.
It also has an expense ratio of 0.35% and just paid a monthly dividend of $0.12623 on February 28. That was up slightly from the $0.12622 paid on January 21.
First Trust S&P REIT Index Fund
We can also take a look at the First Trust S&P REIT Index Fund (FRI).
With an expense ratio of 0.53% and a yield of 3.38%, the FRI ETF seeks investment results similar to the S&P United States REIT Index. Some of the top FRI ETF holdings include Prologis, Welltower, Equinix, Simon Property, Realty Income, Public Storage, Digital Realty Trust and AvalonBay Communities to name just a few. About 16.75% of its portfolio is made up of retail ETFs. About 16.08% of the portfolio is invested in health care REITs.
The FRI ETF just paid a quarterly dividend of $0.4349 on December 31.
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